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Strategies & Market Trends : HONG KONG -- Ignore unavailable to you. Want to Upgrade?

To: Rolla Coasta who wrote (2932)	1/5/2001 9:49:54 PM
From: fut_trade	Read Replies (1) \| Respond to of 2951

...Seems like the US govt may bail out the market. What market doesn't need its govt to intervene afterall ? I would say that the Fed is attempting to prevent a crash at this point. Some speculation suggests that the Fed monitors mutual fund outflows, and if they surge, then the Fed resorts to an emergency rate cut - 2 basis points this time! The last time the Fed cut rates by 2 bp was back in 1992. The last time the Fed intervened with an emergency rate cut was in October '98. I don't think the Fed will prevent the market from seeing new lows, but they should be able to prevent a crash perhaps. I don't like intervention. If I had been short the other day I would have been killed. All the Fed did was allow mutual funds to bail at higher prices. The market will probably be at pre-rate-cut prices soon.